MC increases because 1. in the short run, MC always increases. 2. MC naturally increases as...
MC increases because 1. in the short run, MC always increases. 2. MC naturally increases as firms nears capacity 3. the law of diminishing returns takes effect. 4. labor is paid overtime wages when volume increases.
Homework Answers
3. the law of diminishing returns takes effect.
As the marginal product of the variable input decreases, due to the law of diminishing marginal returns, a firm must hire more of the variable input to get the same increase in output. This increases the cost of producing an additional unit of output.
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MC increases because 1. in the short run, MC always increases.
2. MC naturally increases as...
1. In the short run production function of a firm, MC, ATC, and AVC curves are...
1. In the short run production function of a firm, MC, ATC, and AVC curves are usually U Shaped because of: a. diminishing marginal product of variable input as output produced rises. b. increasing marginal product c. the fact that increasing marginal product follows decreasing marginal product d. the fact that decreasing marginal product follows increasing marginal product. 2. Perfectly Competitive market is considered to be efficient in the LR because, among others,: a. MR=MC=P b. MC=P=Minimum ATC c. Produces...
1. In the short run, the marginal product of labor increases then decreases because of what?...
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8. IF Maria Escalera's disposable income increases from $600 to $650 and her level of personal-...
8. IF Maria Escalera's disposable income increases from $600 to $650 and her level of personal- consumption expenditures increases from $480 to $520, you may conclude that her marginal propensity to (A) consume is 0.8. (B) consume is 0.4 (C) consume is 0.25. (D) save is 0.8. (E) save is 0.25. 9. Which effect describes the fact that when the price level increases, the interest rate increases and consumption decreases? (A) Interest rate effect (B) Net export effect (C) Pareto...
1.(10 points) Assuming that labor is the only variable input in the short run, draw (and...
1.(10 points) Assuming that labor is the only variable input in the short run, draw (and label) a typically shaped marginal product curve for labor. Explain why the curve looks like this. Identify the point where the Law of Diminishing Returns sets in. Explain why we expect this to occur. Identify the three stages of production.
Question 1 (1 point) 1. The short run is a period of time in which the...
Question 1 (1 point) 1. The short run is a period of time in which the amount of output is fixed. nothing the firm does can be altered. the quantity of at least one factor of production is fixed. prices and wages are fixed. Question 2 (1 point) 2. When the demand for electricity peaks during the hottest days of summer, Florida Power and Light Company can generate more electricity by using more fuel and increasing the working hours of...
Please answer the two sub-parts Question 4 (20 points) A firm has the following short-run production...
Please answer the two sub-parts
Question 4 (20 points) A firm has the following short-run production function as follows: Q = 15L +18L2-0.5L, where Q = total products per period and L = number of workers employed per period. 4.1) (3 points) Derive the marginal product of labor (MPL). At what number of workers (L) does the law of diminishing returns begin? MPL = f(L) = Law of diminishing return begins when L = workers. . 4.2) (3 points) Derive...
Suppose that a firm is producing in the short run when machine number is fixed. It...
Suppose that a firm is producing in the short run when machine number is fixed. It knows that as the number of workers used in the production process increases, the number of output changes according to the following table: # of workers # of output 0 0 1 10 2 17 3 22 # of workers # of output 4 25 5 26 6 25 7 23 1. Calculate the marginal and average products of labor for each additional worker....
28. Refer to Figure 14-13. If the price is $2 in the short run, what will happen in the long run? a. Individual f...
28. Refer to Figure 14-13. If the price is $2 in the short run, what will happen in the long run? a. Individual firms will earn positive economic profits in the short run, which will entice other firms to enter the industry b. Individual firms will earn negative economic profits in the short run, which will cause some firms to exit the industry. c. Because the price is below the firm's average variable costs, the firms will shut down. d....
1)in the short run, firms in the market _______. In the long run, some firms _______...
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QUESTION 1 In the short run, the ATC curve is _____ above the AVC curve. A....
QUESTION 1 In the short run, the ATC curve is _____ above the AVC curve. A. always B. sometimes C. never 2 points QUESTION 2 As output rises, A. AFC rises. B. AFC falls. C. AFC remains the same. D. there is no way of determining what happens to AFC. 2 points QUESTION 3 When average total cost is declining, then A. marginal cost must be less than average total cost. B. marginal cost must be greater than...
8. IF Maria Escalera's disposable income increases from $600 to $650 and her level of personal- consumption expenditures increases from $480 to $520, you may conclude that her marginal propensity to (A) consume is 0.8. (B) consume is 0.4 (C) consume is 0.25. (D) save is 0.8. (E) save is 0.25. 9. Which effect describes the fact that when the price level increases, the interest rate increases and consumption decreases? (A) Interest rate effect (B) Net export effect (C) Pareto...
1.(10 points) Assuming that labor is the only variable input in the short run, draw (and label) a typically shaped marginal product curve for labor. Explain why the curve looks like this. Identify the point where the Law of Diminishing Returns sets in. Explain why we expect this to occur. Identify the three stages of production.
Question 1 (1 point) 1. The short run is a period of time in which the amount of output is fixed. nothing the firm does can be altered. the quantity of at least one factor of production is fixed. prices and wages are fixed. Question 2 (1 point) 2. When the demand for electricity peaks during the hottest days of summer, Florida Power and Light Company can generate more electricity by using more fuel and increasing the working hours of...
Please answer the two sub-parts
Question 4 (20 points) A firm has the following short-run production function as follows: Q = 15L +18L2-0.5L, where Q = total products per period and L = number of workers employed per period. 4.1) (3 points) Derive the marginal product of labor (MPL). At what number of workers (L) does the law of diminishing returns begin? MPL = f(L) = Law of diminishing return begins when L = workers. . 4.2) (3 points) Derive...
28. Refer to Figure 14-13. If the price is $2 in the short run, what will happen in the long run? a. Individual firms will earn positive economic profits in the short run, which will entice other firms to enter the industry b. Individual firms will earn negative economic profits in the short run, which will cause some firms to exit the industry. c. Because the price is below the firm's average variable costs, the firms will shut down. d....
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